Distributor aims to make funding transparent for those customers still needing upfront payments and avoiding complexities of vendor funding
Fast-growing Europe-based distributor Exclusive Networks Group has bought a French IT asset finance company and will offer funding deals through the channel. It is part of the continuing drive to IT-as-a-Service, which is obviously revenue and OPEX-based. So why the need for finance, IT Europa asked Barrie Desmond, Chief Operating Officer?
“Because customers are asking for it, and it gives the channel a transparent and easy way to work.” He confirmed that some channel partners were finding it hard to move from the payment up-front model. “This keeps it all internal, without the need to assign ownerships for software and services. It also removes the need for a third-party involvement.”
Although the default rate has been particularly low in IT finance, there is still a paranoia among banks and other funders, he thinks and this way, Exclusive will offer a “one-stop” package that is not vendor-based. The take-up may not be particularly high, as the SaaS model means leasing is no longer required in order to spread payments, but there is a need to understand the rules and regulations and make it transparent to customers.
Called Exclusive Capital, and built on the acquisition of France-based Fibail System and the appointment of Franck Laga, previously the General Manager for Exclusive Networks in France and Africa, as the division’s new Managing Director, it will deliver a range of new value added services, he says.
“Resellers can embrace the opex-orientated, subscription-based IT consumption demands of their customers, while at the same time allowing IT vendors to recognise the full contract value of the deal. Initially operating from France, further acquisitions will fuel the geographic expansion of Exclusive Capital in the coming months.
“To support the ‘as a service’ business model while maintaining upfront cash collection, we wanted control over our own financing operation to make the process quick, easy and totally seamless. We’ve been listening to our vendor and reseller partners, and developed this new strategy to address a growing market need rooted in the seismic changes happening to how enterprises consume IT,” said Olivier Breittmayer (below), CEO of Exclusive Networks Group. “Fibail System is a highly successful business with great relationships with major French banks. These are early days for Exclusive Capital, but it will soon be making a significant contribution to our business as we target €1bn total revenues by 2017.”
It aims to reduce the “complexity typically associated with arranging leasing contracts, and eliminating delay in closing deals by putting leasing options on a proactive rather than a reactive footing, he adds.
Established in 1996, Fibail System is a finance and leasing company specialising 100% in IT. Based in Boulogne, it controls about €40m in contracts.
